Is Gold Nisab More Appropriate For Zakat Than Silver Nisab?

-Second: Does the Nisab Change Due to Changes in Prices? The basic principle is that the revealed texts are not altered due to changes in currency values or standards of living. The Prophet ﷺ specified the nisab for both gold and silver in known quantities and did not link them to purchasing power or to the amount required for a person's living expenses. Therefore, the decline in the value of silver in our time does not alter the nisab established by the Sunnah. Rather, the area of scholarly reasoning is limited to determining whether paper currencies should be evaluated according to gold or silver. -Third: Which Nisab Should Be Used for Calculating the Zakah Nisab of Paper Currency: Gold or Silver? There is a difference of opinion among the jurists regarding this issue. Some hold that the determining factor is the welfare of the poor, and in most cases this is achieved by using the silver nisab. Others maintain that a person has the choice, since the Prophet ﷺ established both gold and silver as nisabs. Given the unprecedented rise in the prices of both gold and silver today, we are of the view that the stronger opinion is to calculate the nisab according to silver, in consideration of the welfare of the poor. It also serves as a means of purifying, increasing, and blessing one's wealth through zakah. However, whoever follows the gold nisab is not sinful. -Calculating Zakah During the Time of the Prophet ﷺ: During the lifetime of the Prophet ﷺ, the currencies in circulation were the gold dinar and the silver dirham. These were the original standards by which wealth was measured and zakah was calculated. As for the paper currencies used today, they are a newly introduced form of wealth that did not exist at that time. Therefore, scholars exercised ijtihad to determine how these modern currencies should be linked to the original Sharia standards of gold and silver for the purpose of establishing the zakah nisab. Two Opinions Among Contemporary Scholars: Two primary views have emerged among contemporary scholars. The First Opinion: Evaluating Wealth According to the Gold Nisab This is the view of many contemporary scholarly councils and fatwa bodies, such as the Council of Senior Scholars in Saudi Arabia. Their evidence includes the following: -First: Gold is a more stable and reliable standard. They argue that throughout history gold has remained the more stable measure of monetary value, whereas the value of silver has fluctuated significantly. Using gold therefore preserves the value of the nisab from severe fluctuations and promotes stability in financial matters. -Second: Gold's historical role as a monetary standard. Historically, currencies were backed by gold, making it the most appropriate basis for evaluating modern paper currencies. -Third: Avoiding making zakah obligatory on relatively small amounts of wealth. If the very low silver nisab were adopted, zakah would become obligatory on relatively small sums that may not even suffice for a person's basic annual needs. This may not align with the objective of the Sharia that zakah is taken from the wealthy. According to this opinion, it is not permissible to switch to the silver nisab merely because it is lower. Rather, the gold nisab should be adopted because it is the more stable and appropriate standard for evaluating paper currency today. The Second Opinion: Evaluating Wealth According to Whatever Is More Beneficial for the Poor (Currently the Silver Nisab). This is also a recognized opinion and is held by many scholars and Islamic institutions. It was also the relied-upon view in the Hanafi and Maliki schools regarding the evaluation of trade goods. Their evidence includes the following: -First: Considering the welfare of the poor. This is the primary objective of zakah. Since the silver nisab is significantly lower than the gold nisab, using it results in more people becoming obligated to pay zakah, thereby increasing the amount of zakah collected and providing greater benefit to the poor and needy. -Second: Choosing the safer position that better absolves one's responsibility. When two valid options exist, the safer course for one's religion and conscience is to adopt the opinion that unquestionably fulfills the obligation, which is achieved by using the lower nisab of silver. -Third: The historical reality. During the time of the Prophet ﷺ and the Rightly Guided Caliphs رضي الله عنهم, the values of the gold and silver nisabs were relatively close. The significant decline in the value of silver is a later development and does not remove its status as a legislated nisab. According to this opinion, it is permissible, and even recommended, for a Muslim to calculate the zakah on his cash and trade goods according to the silver nisab because it is more beneficial to the poor and provides greater certainty in fulfilling one's obligation. Conclusion: Both the gold nisab and the silver nisab are established by the authentic Sunnah, and neither may be abolished or altered. With regard to evaluating modern paper currencies, the stronger opinion is to adopt whichever nisab is more beneficial and advantageous for the poor, whether that is the gold nisab or the silver nisab, because zakah was legislated to support those in need and to realize their welfare. A Muslim should follow the opinion that best absolves his responsibility and fulfills the objective of the Sharia in paying zakah, while referring to the determination of the nisab made by the reliable scholars of his time.